Every Customer Conversation is a Moment of Truth: Leveraging Customer Centricity to Drive Profitable Growth

Welcome to Today’s Web Seminar
February 13, 2014
Sponsored by:

Hosted by:

Elliot Kass has been a leading force in high-tech journalism and marketing
for more than twenty-five years. In the 1980s, he was a founding editor of
InformationWeek and served as the publication’s first chief of correspondents.
In the early 1990s, as the Editor of Communications Week and later Internet
Week, Elliot helped usher in the online era, winning numerous awards for the
publications’ coverage of networking technologies and eBusiness.
As UBM Technology’s Vice President for Content Marketing from 2004 to 2013,
Elliot pioneered the field of marketing and content services. He worked with
hundreds of clients across the high-tech spectrum, developing content with
strong appeal for their audience of technology and business professionals.
A frequent public speaker on technology-related topics, in 1998, Elliot
organized the first educational seminar on the Internet for the U.S. Congress.
He has also spoken at the UN on the Internet’s economic potential and
appears on numerous industry panels. His articles have been published by
leading industry analysts, such as the Gartner Group, and have appeared in
publications as divergent as Folio, Computerworld Computing and The
Washington Post.

Martha Rogers, co-founder, Peppers and Rogers Group - Recognized for more than
20 years as one of the leading authorities on customer-focused relationship
management strategies, Dr. Martha Rogers, Ph.D. is an acclaimed author, business
strategist and a founding partner of Peppers & Rogers Group, the world's premier
customer-centric consultancy.

Business 2.0 magazine named Martha Rogers one of the 19 "most important business

gurus" of the past century. The World Technology Network cited her as "an innovator
most likely to create visionary 'ripple effects.'" Martha's counsel and insight are regularly
sought by Fortune 500 and Blue Chip executives. Her experience in documenting
customer value, and her expertise in applying "out-of-the-box" thinking makes her
equally popular among the global media, engagement planners, event organizers, as
well as corporate and association leaders who are eager to learn more about customercentric concepts and methodologies.
An adjunct professor at the Fuqua School of Business at Duke University, Dr. Rogers is
the co-director of the Duke Center for Customer Relationship Management. She is
widely published in academic and trade journals, including Harvard Business Review,
Journal of Advertising Research, Journal of Public Policy and Marketing, and Journal of
Applied Psychology. She has been named International Sales and Marketing Executives'
Educator of the Year. Dr. Rogers earned her Ph.D. at the University of Tennessee as a
Bickel fellow. At Peppers & Rogers Group, Dr. Rogers has led several large subscriptionbased research studies focusing on particular aspects of CRM.

Eric Deitert is Director of Insurance Industry Marketing, at
Pegasystems Inc. For the greater part of Eric's career, he has
worked for prominent software development companies that
provide technology for process improvement. He has held a
variety of roles in which he has been responsible for technology
product marketing, product management, and strategic market
analysis within the BPM and business rule engine (BRE) sectors.
Prior to joining Pegasystems, Eric was a Research Director at
Gartner, covering BPM and business rule technology.

Every Customer Conversation
is a Moment of Truth
Leveraging Customer Centricity to Drive
Profitable Growth

Martha Rogers, Ph.D., co-founder of Peppers & Rogers Group
Eric Deitert, Dir. of Insurance Industry Marketing, Pegasystems

© 2014 Pegasystems Inc. - Confidential

2/28/2014

What is Customer Centricity and why
does it matter?

Customer Centricity places
our customer at the center
of all our company’s efforts,
delivering a consistent,
superior experience

6


Yesterday businesses were built on a foundation
of personalized service and loyalty

7


Today’s New Paradigm

8


9


Moore’s Law

Every 20 years,
computers get a
thousand times faster
and cheaper

10

2013 1to1 Media. All rights reserved. 1to1 Media is a registered trademark of Peppers & Rogers Group.

10

Zuckerberg’s Law

Every 20 years,
we share a
thousand times
as much
information
as others

11


11

Suppose you were a food source for bees
Bright colors and a sweet fragrance can get any
exploring bee to take a look

But a bee will only do his dance to tell
the other bees about you if he was
satisfied with the nectar
Moral: In the absence of
communication among your
customers, advertising rules

12

Once your customers communicate
with each other, it’s the customer
experience that counts

“I Want It ALL and I Want It NOW!”

1 Day
.5 Day

Retail Store/Branch
Fax
E-Mail
Call Center — Voice

1 Hour

Call Center — IVR
Website

10 Minutes

SMS/Mobile Data
Interactive TV
Comparison Engines
Web Chat
Consumer Web Services
Social
Mobile

1 Minute
1 Second

1975

13

1985

1995

2000


2005

2010

2015

13

 Nearly half of Americans have no life insurance at all and 80%
fail to meet the 7X multiplier
 Only 1/3 have shopped for life insurance in the past year

 22-68% of customers I different age groups use social media
when shopping for life insurance
 55-86% of customers in different age groups visited insurance
carrier websites to search for information
 The majority of potential customers prefer email as a way for
the company to share information, but there are significant
numbers who prefer other channels
-- Acxiom survey, reported in 1to1 Media

14


“You can't take
something bad off
the Internet. That's
like trying to take
pee out of a
swimming pool.”

Screw up, and the
“news” will be immediate,
ubiquitous, and permanent

- Grant Robertson, blog post, May 1, 2007

You can’t un-Google yourself
Linda Kaplan Thaler, CEO, Kaplan Thaler Group

15


15

Democratization of the
Customer Experience
16


16

Customers assert their new social power easily

 August last year – HSBC forced to reverse course
 Over the summer it had dropped its policy of free
overdrafts for university students
 By using Facebook, students connected with others to
organize a protest of this new policy
 Soon HSBC reinstated the free overdraft policy

17

1


Research Study

18


18

Customers Would Rather
Switch than Fight
More than

50%

Would be likely to
switch to another
company if they offered
more options to
connect with them

Those under 45 were 20% more likely to do so
19


19

Toyama no Kusuri-uri

House-to-house medical supplies
Consumers only charged for usage
Detailed records kept in a database,
called the “Daifuku cho”

Circa 1750

20


Challenges to a Customer Centric
Approach…

1

2

Single view of
the customer

3
21

Consistent
multi-channel
experience

Personalized
customer
interactions

Placeholder for poll
In your opinion what are the most pressing challenges your
enterprise faces when it comes to customer centricity?
(Select all that apply)

Consistent Multi-channel experience

Single view of the customer
Personalized customer interactions
Other

22


Challenge: Global Insurer Enable a Multi-Channel Experience
MILLIONS SAVED PER YEAR WHILE REVOLUTIONIZING THE CLIENT SERVICE EXPERIENCE
BUSINESS GOALS

RESULTS

 Reduce unit costs

28% IMPROVEMENT OF FIRST
CONTACT RESOLUTION

 Improve retention by enhancing
customer & distributor services

 Instill process consistency & quality
 Automate non-value add processes

18% COST REDUCTION
due to back office automation

 Replace existing workflow systems
(AWD) with a true BPMS

6% COST AVOIDANCE

due to front office CRM

40% REDUCTION
in manual steps

DESIGN &
35% REDUCTION IN EFFORT TO PLATFORMBUILD
NEW CUSTOMER SERVICE
“Our market is changing. We need to ensure that our business is
ready to compete in the new environment. Improving our customer
service, creating compelling products and building an agile and
responsive business will be our priorities.”

CEO

23

Pega Confidential, Internal Use Only

Survey: Customers Find Multi-Channel
Coordination Lacking
• Customer interact with insurance providers using 3.6 channels
For ex: 97% of all mobile users also use website
• 32% of mobile users are satisfied with that experience
• Those dissatisfied with one channel tend to be dissatisfied with
other channels too, and with the whole company
For ex: 71% of email users dislike mobile experience
--Forrester

24


Anticipating customers
 Go to an ATM for ING Bank
̶ Ask to withdraw cash
̶ Suppose the ATM notifies you that you don’t have enough
money in your account for this...
 If you are a creditworthy customer, then –depending on your
preferred channel -- ING will email, call, text, mail you a
credit line offer

Response rate greater than 50%!

Source: SPSS Netherlands
25

2


Cigna Makes Healthcare Personal
Overview
Proposed changes in the U.S. Healthcare market made it more urgent for Cigna
to build relationships with end-user customers rather than the employers that
provide the coverage.

Activities
• Created the “Words We Use” document
• The Contact Center also overhauled its language and agents were
given “customer treatment” training
• Created the “Experience Room” at headquarters where 6,000
employees walked through 10 stations representing the customer
experience

26


Cigna Makes Healthcare Personal
Overview
Proposed changes in the U.S. Healthcare market made it more urgent for Cigna
to build relationships with end-user customers rather than the employers that
provide the coverage.

Activities
• Created the “Words We Use” document
• The Contact Center also overhauled its language and agents were
given “customer treatment” training
• Created the “Experience Room” at headquarters where 6,000
employees walked through 10 stations representing the customer
experience

• 5% increase in first call resolution
• 6% increase in customer satisfaction
• 156% increase in level of understanding by customers of
Cigna’s terms and business
27


Challenge: Life Insurer Enable a Single View of the Customer
Optimized Customer Experience, while handling 16% rise in Service Volumes

BUSINESS GOALS

 Service any call for any product
with CSR

RESULTS

16%INCREASE IN SERVICE VOLUME
without increasing staff

CONSOLIDATED 5 CALL
CENTER INTO 1

 Reduce service costs
 Optimize customer experience
 Stop transferring calls

14% REDUCTION OF FTEs

20% INCREASE CRS utilization

 Create one-and-done processing

AWARD-WINNING CUSTOMER SERVICE PLATFORM

“We’re very happy that Celent recognized our business and technology achievements
attained with our customer experience initiative by leveraging Pegasystems in a best
of breed, business-focused approach. Celent’s recognition provides an external
validation of our key project objective: making a significant, positive impact on our
many valued customers.”

Vice President of Architecture

28


Acting in the customer’s interest

How Amazon helps you avoid
making mistakes

29


Customer centricity changes our focus
Company X sells auto, property, health and life insurance

Agents recruit customers, then are protected from
poaching by other Company X agents
But this agent specializes only in auto insurance

How much value is lost every
time this agent recruits a new
auto insurance customer?

30


Challenge: UK Insurer Enables Personalized Interactions
700 Activities Simplified to 23 Core Processes: £1 billion COST REDUCTION

BUSINESS GOALS

 “Become the best bank &
insurer for customers”
 Achieve a step-change
improvement in customer
outcomes, complaint reduction
and Net Promoter Scores
 Simplify end-to-end processes

RESULTS

30% REDUCTION

50% REDUCTION

in customer touch points & handoffs

In cases suspended

80% REDUCTION

10% IMPROVEMENT

in re-indexing of cases

in productivity for phase 1

“Pega has been that critical partner & friend to
complete that simplification transformation across
our business.”
Group Change Programme Director
Leading European Banking & Insurer

31


Mass-customizes customer reports

Prior to client meeting, company’s CRM system
produces a customized recommendation

Customers 4X as likely to buy

32

3


End-to-End Customer Centricity Delivered
Maximize Customer Value
Service

Acquire

Retain

Expand

Omni-Channel Customer Centricity Engagement

Insurance Industry Specialization

Marketing

Sales

Service

Next-Best-Action
Marketing Application

Sales Force
Automation Application

Customer Process
Manager Application

Pega BPM
Rules • Process • Decisions • Case • Predictive Analytics

Pega Cloud®

33


The Power to Engage™
Personalized and Adaptive Customer Interactions Everytime
1
Customer
Profile

Gold

Contact
Channel

Persona

Satisfaction
Level/NPS

Call
Center

Tom
Detractor
MyWorld

Current
Product

Sale & Service
objectives

Auto
Home

• Retain
• Promos
• Srvc Work

1

2
Silver

Web

Joe
Bargain

2

Promoter

Life

Remediate

At point of interaction the system
automatically analyzes the customer
situation and retrieves the most
appropriate data to process the work …

…and then dynamically assembles the best
communication, process, and decision
components to deliver the best-fit products,
services and sales approach

Interaction

 Guides users to intuitively follow processes
 Automatically tailors the user experience
 Automates service requests increase quality,
satisfaction and experience

34


Customer Interaction Optimized with Pega

Users guided by
marketing best practices

Recommends
Next-Best-Action

Leverage in your current service desktop

35


Predictive and adaptive
analytics highlight
relevance for each
customer

Personalized Service Interactions
with
Production Line Efficiency

Thanks for
being our
customer

Personalized Interactions
through Context

36

One Company
to the Customer


Seamless
Multichannel Experience

Customer Centricity’s Objective

Product

Customer Centricity

Maximizing the value
created by each customer

Customer
Needs
Satisfied

Share of
customer

created by each product

Centricity
Market share

Customers Reached

37


37


Customers create all

value for your company

It’s long-term as well as short-term value
Customers and prospects are finite in number

38


The company that does not use the
information it has about customers
has no advantage over the company
that does not have information about
customers

What business are you in?

39


39

In 1996, Barnes & Noble
offered to buy amazon.com

Today, Barnes & Noble has a
market cap of $719 million

amazon.com has a market
cap of $102 billion
40


40

How good is your
customer experience?

80% of corporate executives
say their company delivers a
superior customer experience

Just 8% of consumers
report they received one
Source: Bain and Company

42

2013 1to1 Media. All Right Reserved. 1to1 Media is a registered trademark of Peppers & Rogers Group.

42

If customers trust you…
… they believe
You will understand their point of view

 What’s it like to be your customer?
 What should it be like?

43


43

It’s basic:
Customers create the most
value for you when you
create the most value
for them

44


44

Customer Centricity is building
the value of the company by
building the value of the
customer base

45


45

What is our purpose?
If our goal is to sell more stuff to our
customers, we will compete on price
If our goal is to add value to our
customers’ lives, then…

We’ll end up selling more stuff!
46


46

Customers can be tough…
… the two things they respond to:

Figure out
what’s best for
each of them,
and do it -well

47


47

Placeholder for poll and Q&A

Would you like Pega to send you their new whitepaper titled,
“Every Customer Conversation is a Moment of Truth, Are You
Ready?”
Yes, I am a Life Carrier

Yes, I am a P&C Carrier
Yes, I am a Life and P&C Carrier

No thanks

48


Build for Change®

49

Thank you


Every Customer Conversation is a Moment of Truth: Leveraging Customer Centricity to Drive Profitable Growth

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Every Customer Conversation is a Moment of Truth: Leveraging Customer Centricity to Drive Profitable Growth